Another lawsuit was filed today:
Kaplan, Kilsheimer & Fox LLP Files Shareholder Suit Against Cendant Corp. and Certain Officers and Directors
NEW YORK, April 16 /PRNewswire/ -- The following statement was issued today by Kaplan, Kilsheimer & Fox LLP:
YOU ARE HEREBY NOTIFIED that a Class Action has been filed in the United States District Court for the District of New Jersey on behalf of (1) all persons or entities who purchased or otherwise acquired CUC International, Inc. (''CUC'') common stock between May 28, 1997 through and including December 17, 1997; (2) all persons or entities who exchanged HFS, Inc. (''HFS'') common stock for shares of CUC common stock pursuant to a Registration Statement
and Joint Proxy/Prospectus dated August 28, 1997; and (3) all persons or entities who purchased or otherwise acquired Cendant Corp. (''Cendant'' or the ''Company'') common stock between December 18, 1997 through and including April 15, 1998 (the ''Class'').
Cendant, a US direct marketing company, was formed by the merger of HFS and CUC on December 18, 1997. Yesterday, the Company announced that it had uncovered accounting irregularities that would force it to cut its 1997 earnings by an much an $115 million, or 13 cents a share. The Complaint alleges that Cendant and certain of its officers and directors, violated Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 by making false and misleading statements about, inter alia, Cendant's business prospects and success in order to conceal the adverse facts concerning the Company's results of operations and fiscal condition. The complaint further alleges that Cendant's insiders concealed the true nature and extent of the problems which were adversely impacting it's business in order to support and artificially inflate the price of
Cendant common stock, thus allowing them to reap the profits of insider selling. For example, the complaint alleges that defendant Henry Silverman, Cendant's Chief Executive Officer, sold 1.7 million shares of the Company's stock in early February when the stock was trading at more than $35 per share, and defendant Walter Forbes, Cendant's Chairman, sold 300,000 shares early last month at prices ranging between $37.62 and $38.37.
Plaintiffs seek to recover damages on behalf of (1) all persons or entities who purchased or otherwise acquired CUC common stock between May 28, 1997 through and including December 17, 1997; (2) all persons or entities who exchanged HFS common stock for shares of CUC common stock; and (3) all persons or entities who purchased or otherwise acquired Cendant common stock between December 18, 1997 through and including April 15, 1998, and are represented
by Kaplan, Kilsheimer & Fox LLP and Bross Zipkin & Pinilis, which have many years of experience in prosecuting investor class actions and extensive experience in actions involving financial reporting and management fraud.
If you are a member of the class, you may move the court, no later than June 15, 1998, to serve as lead plaintiff for the class. In order to serve as lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, or your rights, please contact: Jonathan K. Levine, Christine M. Comas, Stephen M. Sohmer or Adrienne L. Valencia of Kaplan, Kilsheimer & Fox LLP at 800-290-1952 or 212-687-1980, 685 Third Avenue, 26th Floor, New York, NY 10017, fax 212-687-7714, e-mail address: kkfoxlaw@aol.com.
|
